Life insurance for women: All you need to know

Life insurance is required for protection against risk and risk is not limited to only men. Rather, women are equally vulnerable to life-risks. In today’s fast-moving world, the role of women has turned around- to managing a listed entity from just homemaking and to managing the Ministry of Finance in India and so on. Let’s drill into the details of how life insurance is a must for women!

 How is life insurance important for women?

  • Women sometimes have joint responsibility towards their family as well their parents if they are the only child of their parents. Thus, irrespective of whether they earn or what their marital status is, life insurance for women should not be overlooked.
  • Women can now be seen in the position of breadwinner for the family. Education has helped women to stay financially independent and support the family in case of financial emergencies. Their income adds to the household income.
  • Even if a woman is not a breadwinner, she can be the ultimate support of her family. Thus, in case of any undesirable event, her immediate family needs to be taken care of.
  • If you are aware of life insurance meaning in-depth, you’ll know that life insurance premiums are lower for women. Further, life insurance companies consider that value is also created even if women stay at home.

 Type of life insurance policies suitable for women

  • Term Insurance: It provides enough cover at a reasonable cost. In case of a tragic event, the immediate family gets sufficient finance to manage their lives, settle the outstanding liabilities, getting a lump sum amount for important events, etc. The premium amount is calculated using a life insurance calculator.
  • Child Insurance: With child insurance, the education of the child would continue with a regular inflow of cash. You just need to save a specific amount as per the life insurance calculator.
  • Retirement Insurance: Women generally live longer than men. As a woman, you need not be dependent on anyone in your retirement life. With retirement insurance, you can receive a fixed pension for a balanced period of life, and you can manage your living and medical expenses.

 What policy term is suitable for women?

If any undesirable event crystallizes during the policy period, the beneficiaries of the policy would get the required financial support. Ensure that you are covered completely during your life expectancy period. There is no standard rule for an ideal policy term, but the policy term is generally evaluated keeping in view the current age and health history. Accordingly, the policy term you choose may vary from 10 years to 75 years.

 What amount of term insurance is sufficient?

  • Insurance cover is the sum assured required by your family in case of any undesirable event. It depends on several factors. A life insurance calculator is helpful in such a case.
  • General inputs required for the calculation of the coverage amount are your current annual income, present age, financial goals, and present financial liabilities.
  • The life insurance calculator will specify the sufficient cover amount and premium amount. The premium amount would be higher for a higher cover amount.

 Why is the insurance policy premium lower for women?

  • It’s all linked to the basics. The average lifespan of women is higher than the average lifespan of men. As you live longer, you have to pay a premium for all those surviving years and the sum assured liability is generally delayed.
  • Another reason is that women generally have a healthy history and lower health concerns as compared to men. They are less prone to illness, and it assures the insurers. Thus, the premium amount is generally lower.

 Tax benefits of life insurance for women

  • Women have equal taxation benefits like men. The premium amount paid is allowed as deduction under Section 80C of the Income Tax, 1961 with a maximum cap of Rs. 1.5 lakh.
  • The life insurance proceedings received are tax-free under Section 10 of the Act.


Life insurance is all about financial security for you and enough financial assistance for the immediate family in case of any undesirable event. Buying a life insurance policy gives a sense of purpose, value, and self-worth. It further relieves stress and lets you enjoy your life knowing that you have protected yourself and your family.